Microsoft deal with Constellation Energy to restart Three Mile Island nuclear plant, pending permits.

From Investing.com: 2024-09-21 13:00:56

Constellation Energy and Microsoft have signed a power deal to resurrect a unit of the Three Mile Island nuclear plant in Pennsylvania. Regulatory permits have not been filed yet. Tech companies like Microsoft are driving a surge in nuclear energy demand due to the need for uninterrupted power. Constellation’s shares have soared over 100% this year.

The restart of the plant is pending federal, state, and local approvals. Constellation plans to spend $1.6 billion to revive the plant, with completion expected by 2028. Microsoft will purchase energy from the restarted plant for 20 years. The plant will provide enough electricity for about 700,000 homes.

Several tech executives, including Microsoft’s Bill Gates, support nuclear energy as a solution to growing power needs. Microsoft has also signed an agreement with a fusion company for a plant to be online by 2028. Nuclear plants generated about 18.6% of total electricity in the US last year.

The deal between Constellation and Microsoft aims to decarbonize the grid and support Microsoft’s commitment to become carbon negative. Similar power supply deals for A.I. data centers are under scrutiny for potential cost spikes and grid reliability concerns. Financial details of the agreement were not disclosed.



Read more at Investing.com: Microsoft deal propels Three Mile Island restart, with key permits still needed By Reuters